Indonesia’s oil palm dilemma

INDONESIA’s attractiveness for being the preferred destination of Malaysian oil palm planters has been shaken by reports of the country’s plan for a plantation bill that will limit foreign ownership to 30% from the present 95%.

Top plantation companies such as Sime Darby Bhd, Kuala Lumpur Kepong Bhd (KLK), IOI Corp Bhd, Genting Plantations Bhd, TSH Resources Bhd and IJM Plantations Bhd are some of the big names with hefty investments in Kalimantan, Sumatra, Sulawesi, Riau, Aceh and Jambi as part of their expansion plans.